News of the day – 14th June 2021

Applying to the ATO for Hardship

by Adam Dawson – 14th June 2021

It’s not easy getting the ATO to approve a hardship relief application, but when they do, it’s certainly worth it. 

Sometimes taxes can be waived if you can prove that paying them would cause serious hardship. Or you can set up an interest-free payment plan, have other loan payments deferred, fast track tax refunds, and prevent other government organisations from accessing your money.

If you have a business debt less than $100,000, and you can handle those dreadful robot conversations, you can use the ATO’s automated phone service on 13 72 26 to set up a payment plan, but don’t expect it to be very nuanced.  

If you’re an average human who prefers talking with other humans, make sure to call during normal business hours when the robot will have a human supervisor to help. 

If you want to handle it yourself and you’re savvy on a computer go to:  https://onlineservices.ato.gov.au/business/  

Again, don’t expect these options to be personal, you will only be directed to basic solutions. If your situation is complex, get a professional assessment to be aware of all your options. 

If you have a business debt over $100,000, you are in a different category. You will definitely need a tailored strategy and it’s best not to be overly transparent with the ATO until you have all your ducks in a row.

Hardship often warrants a restructure which can give you a fresh start. To maximise the benefits it’s a good idea to get an independent assessment prior to contacting the ATO.

It’s important to remember that the ATO have protocols which are constantly changing. Outcomes will vary depending on regulation reforms or which political party is in government. 

Contact us for a free assessment to check your eligibility.